Because the tenant segment willing and able to rent a particular property is fixed, there is little you can do to change this.Property and Tenant Segment RelationshipEach tenant segment has specific housing requirements, and will only rent a property that meets all of their requirements.

Do you recommend to buy in vicinity of 100K in a so-so area where the profit margins are greater but the risks are bigger too or maybe move into the higher segment (say close to 150-200k) where it is probably more stable?

What I'm seeing in practical terms is that this really doesn't matter for my market segment, long-term C'class SFR.

The segment we are trying to hit is people who would normally be staying in a hotel, looking for comparable accommodations without having to spend $300+ per night. 

.** Small towns may rely too much on a single business or market segment.

And yes, I am in that industry segment as well.

Let's start with location considerations.LocationSome location characteristics to watch for:Long term major employer outlook, both the market segment(s) and the specific companies.

The health worker segment of MTR has existed for a long time but demand fluctuates and they aren't looking for the same locations in some areas as STR.   

Glamping is not always the best choice for STRs....you are automatically cutting out half (or more) of your audience as many people do not want to rough it in any way shape of form when they go on vacation, or especially for business or non-vacation travel.But it has it's appeal to a small segment of travelers, so if that is your dream, just do the research.....

Some segments of the market are even starting to feel saturated, and this might lead to more challenging conditions, especially with the influx of new buildings.It's worth keeping in mind that the situation could change.